Are these 3 of the safest dividend shares on the entire FTSE 100?
Dividend shares are brilliant because they offer income on top of any capital growth when the share price rises. Effectively, investors get two bites of the same cherry.
Even if a share price stalls, the dividend still rewards investors for their loyalty. And if the price dips, reinvested dividends may pick up more shares at a lower level, which can really pay off when they recover.
As a huge fan of FTSE 100 income stocks, I was intrigued to see Chris Beauchamp, chief market analyst at IG Group, highlight three “dividend stars” to watch, citing their consistent, well-supported dividends.
Theyâre all companies I admire, offering some of the safest shareholder payouts on the FTSE 100, alongside potential growth. There are no guarantees this will continue, but I think all three are worth considering for a balanced Stocks and Shares ISA or Self-Invested Personal Pension (SIPP).
HSBC offers income and growth
Beauchampâs first pick is HSBC Holdings (LSE: HSBA). He says the Asia-focused bank has ârebuilt its reputation as a dependable income stock, steadily lifting dividends over the past five yearsâ.
Today, it has a trailing yield of just over 5%, supported by strong profits and capital discipline. As Beauchamp puts it: âInvestors get a solid and sustainable income stream without excessive riskâ.
HSBC has also delivered bags of growth, the share price up 48% in the past 12 months and 202% over five years.
Despite that, the shares remain reasonably valued, with a price-to-earnings (P/E) ratio of 10.5. Risks include falling interest rates, which could squeeze margins, and US-China trade tensions. But long-term the rewards appear to justify taking them.
Aviva shares have flown
Next is insurer Aviva (LSE: AV). Its shares are up 41% over one year and 152% over five. The trailing yield is 5.3%, despite the strong run.
Beauchamp highlights its âstreamlined business and strong cash generationâ. Payouts are well-covered and backed by healthy capital reserves, offering a dependable income stream, he says.
I would echo that. Under CEO Amanda Blanc, Aviva’s become a leaner, more efficient operation. The shares are now looking pricey with a P/E of 28 though, while a broader stock market crash could hit flows into its asset management division. But I think itâs worth considering with a long-term view.
Sainsburyâs looks tasty too
J Sainsbury is a FTSE 100 dark horse, overshadowed by sector leader Tesco. Yet its shares have risen 25% over one year and 65% over five.
The yield’s lowest of the three though at 2.8%. The payout was frozen at 13.1p per share in 2023 and 2024, before increasing by 3.82% to 13.6p in 2025. Margin pressure from grocery price wars, inflation and rising staff costs are a concern.
The shares are pricier than the other two with a P/E of 14.75. Beauchamp notes âresilient trading and strong cash flowâ, with payouts underpinned by efficiency gains and steady grocery demand. Letâs hope the cost-of-living crisis eases, and shoppers can spend more.
All three income heroes offer a blend of income and growth, with relatively safe payouts, making them worthy considerations. They may not be the very safest dividend stocks on the FTSE 100, but I think they’re pretty close. Investors should take a long-term view to ride out any short-term volatility and let dividends compound over time.
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HSBC Holdings is an advertising partner of Motley Fool Money. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended HSBC Holdings, J Sainsbury Plc, and Tesco Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
